Islamist militants attacked a gas production field in southern Algeria on
Wednesday, kidnapping at least nine foreigners and killing two people during
a dawn raid, local and company officials said.

The raid, claimed by an al-Qaeda affiliate, came after Islamists had vowed to retaliate for France's military intervention in Mali, where its forces have been in action against al Qaeda-linked militants since last week.

APS, the Algerian press agency, reported that two Britons were among the dead, though the Foreign Office was not yet able to confirm those reports. Other local sources said a French national was killed in the attack. An Irish national from Northern Ireland is believed to be among those held.

The Foreign Office confirmed that "British nationals are caught up in this incident" and it had "political and consular crisis teams working on this incident".

Citing sources on the ground, Les Dernières Nouvelles d’Algérie, the national newspaper, said it had unconfirmed reports that two British security agents and a “gendarme” had been killed.

The attack raised fears that the French action could prompt further Islamist revenge attacks on Western targets in Africa, where al Qaeda in the Islamic Maghreb operates across borders in the Sahara desert, and in Europe.

Al Qaeda in the Islamic Magreb said it had carried out Wednesday's raid on the In Amenas facility in Algeria, Mauritania's ANI news agency reported.

The Algerian interior ministry said: "A terrorist group, heavily armed and using three vehicles, launched an attack this Wednesday at 5 am against a Sonatrach base in Tigantourine, near In Amenas, about 60 miles from the Algerian and Libyan border."

The gas field is operated by a joint venture including BP, Norwegian oil firm Statoil and Algerian state company Sonatrach.

Algeria's official APS news agency said that one security guard had been killed and seven people were injured including two foreigners.

Five Japanese nationals working for the Japanese engineering firm JCG Corp were kidnapped as well as a French national, local officials said. An Irishman was also seized, the Irish government said, while a diplomatic source said an American had been kidnapped.

Also kidnapped was a Norwegian gas worker, the newspaper Bergens Tidende said, quoting the man's wife.

"I received a phone call from my husband this morning and he said he was kidnapped," the woman said. The Norwegian Foreign Ministry could not confirm the report.

The Algerian interior ministry said the attack was directed at bus taking gas field workers to an airport. The number of hostages remained unclear.

The foreigners were taken from In Amenas in the morning. Algerian troops had mounted an operation to rescue the hostages and had also surrounded the workers' camp at Tiguentourine, a local source said. A French source said that the raiders had come from Libya.

Algeria has allowed France to use its air space during its military intervention against al Qaeda-linked Islamist rebels in Mali, although officials have yet to make a link between Wednesday's attack and the conflict in Algeria's southern neighbor.

“The government stands ready to use all the resources available to us to ensure that our citizen is released as soon as possible,” said Ireland’s foreign minister Eamon Gilmore, also deputy prime minister.

BP this morning confirmed it had experienced a “security incident” at its In Amenas gas field in the eastern central region of Algeria, that it had informed UK authorities and was “setting up a helpline for relatives”.

“A terrorist incident is underway,” said a Foreign Office spokesman. The Elysée Palace declined to comment.

There were conflicting reports over the number and nationality of causalities and hostages.

The latest report from Algeria’s national news agency, APS, says two people were killed and six wounded in the attack.

An al Qaeda-linked group operating in the Sahara has claimed responsibility for the attack, saying it came from Mali, where France has launched a military operation against Islamists in the north of the country and today launched its first ground offensive.

ANI, which has regular direct contact with Islamists, said that fighters under the command of Mokhtar Belmokhtar were holding the foreigners seized from the gas field.

“We are members of al-Qaeda and we come from the north of Mali,” one fighter told AFP.

Belmokhtar for years commanded al-Qaeda fighters in the Sahara before setting up his own armed Islamist group late last year after an apparent fallout with other militant leaders.

But in a video released in December, Belmokhtar warned his group would respond to all those who “plan or participate in the war in northern Mali”.

However, DNA said that sources “on the ground” said the attackers had crossed over from neighbouring Libya and had “Libyan accents”.

The hostages were taken from In Amenas at around 2am this morning.

Algerian troops have mounted an operation to rescue the hostages and have surrounded the workers’ camp at Tiguentourine, a local source said.

Algeria has allowed France to use its air space during its military intervention, although officials have yet to make a link between Wednesday’s attack and the conflict in Algeria’s southern neighbour.

Islamist militants are currently holding eight French nationals hostage in northern and western Africa. Al-Shabab militants in Somalia today said they will execute a French intelligence agent they claim to be holding in retaliation for a botched French operation to free him.

The French government, however, says it believes Denis Allex was killed by his captors during Friday’s raid in which two French commandos died.

Al-Shabaab have denied the French account by have provided no proof that he is still alive.

President François Hollande of France said this morning: “Today, you can imagine that I think about the predicament of the hostages at every moment.

“But also want to state France’s position, namely that it is by being firm, including by intervening as we are in Mali, that we will make hostage takers give in.” The hostage takings took place as French troops were due to engage in their first major ground combat with Islamist rebels in Mali “within hours” after heading for Diabaly, captured by rebels on Monday.

A convoy of about 30 armoured vehicles set out from Bamako last night for the town, 220 miles to the north. The first Nigerian units of an African force are due to arrive today.

One Malian security source told AFP fighting had already started.

“French special forces are currently are engaged in close combat with the Islamists. The Malian army is also there,” he told AFP.

French fighter jets, meanwhile, struck the headquarters of the Islamic police in Niafunke, a small town on the Niger river near the ancient caravan route of Timbuktu, residents said.

French army chief Edouard Guillaud said strikes were being hampered because militants were using the civilian population as a shield.

“We categorically refuse to make the civilian population take a risk.

If in doubt, we will not shoot,” he said.

French defence minister Jean-Yves Le Drian admitted that Malian forces around Diabaly have been struggling to combat well-armed rebels who melt into the local population.

The central town of Konna had not been recaptured by government forces, he said, contradicting earlier reports.